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As an adult what are some good money saving strategies

#money #money-management #everyone

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James Constantine’s Answer

Dear Angel,

Strategies to Boost Your Savings as an Adult

As an adult, it's crucial to save money for financial security and to achieve your long-term objectives. Here's how you can effectively boost your savings:

1. Establish a Budget: Begin by monitoring your earnings and outgoings to gain a clear understanding of your financial habits. Dedicate a part of your income to savings and adhere to your budget.

2. Automate Your Savings: Arrange for automatic transfers from your current account to your savings account monthly. This ensures you save before you even have the opportunity to spend.

3. Eliminate Unnecessary Expenses: Examine your spending and pinpoint areas where you can reduce costs. This might involve eating out less often, terminating unused subscriptions, or seeking cost-effective alternatives.

4. Be a Smart Shopper: Hunt for bargains, utilize coupons, and compare prices prior to making purchases. Resist impulse buying and only buy what you genuinely need.

5. Cook at Home: Dining out can be costly, so aim to prepare meals at home more frequently. Meal planning can also help conserve both time and money throughout the week.

6. Minimize Utility Bills: Reduce your energy costs by switching off lights when they're not needed, unplugging devices, using energy-saving appliances, and adjusting your thermostat.

7. Stay Clear of Debt: Aim to settle high-interest debts as soon as possible to avoid unnecessary interest payments. Use cash or debit cards instead of credit cards to prevent overspending.

8. Boost Your Income: Think about taking on a side job or freelancing to increase your income. Any additional earnings can be channeled straight into your savings.

9. Build an Emergency Fund: Establish an emergency fund to cover unexpected costs like medical expenses or car repairs. Strive to save at least three to six months' worth of living costs.

10. Invest Smartly: Once you've accumulated a decent amount of savings, think about investing in low-cost index funds or other investment options to increase your wealth over time.

By adopting these savings-boosting strategies, adults can gain financial control and make strides towards achieving their financial objectives.

Top 3 Credible Sources Used:

The Balance: The Balance is a reliable source of financial advice, offering expert insights on a range of money management topics, including savings strategies for adults.

NerdWallet: NerdWallet is a respected personal finance platform that provides guidance and tips on saving money, budgeting, investing, and other financial issues.

Investopedia: Investopedia is a renowned resource for financial education, offering comprehensive articles on savings strategies, investing, and personal finance topics for adults.

God bless you!
James Constantine.
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Sheetal’s Answer

You can invest in stocks or mutual funds, but make sure you are reading thoroughly before investing. Nowadays we have apps like Grow for investments that provide previous years stats and other required information to make a decision to invest. You can get good returns from there.
You can make a 70-30 rule, 60% on expenditure and 40% on savings.
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Hilda’s Answer

Enroll in any employer offered plan which automatically deducts funds from your salary and invests in the plan.
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Roger’s Answer

Love this question. And, the answers are simple.
"Do not spend more than you make." You wont have any money problems EVER if you just spend less than what you bring home.
Be aware of expenses that suck money out of your wallet like expensive coffee, expensive meals.
"Save 15% of your salary." (Yes, you can do this.... save even more than 15%.)
And, start investing in a 401k savings plan or other retirement plan immediately when you get that first real job. (If you wait, you lose time and lose a significant amount of money.)
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Jeanine’s Answer

Hi there Angel! Great question!

Saving money is so important as an adult. This will give you a bit of comfort on rainy days as well as allow you to enjoy a great quality of life. It took me a while to see that doing things like eating at restaurants and drinking $5 coffees wasn't a good use of my money. Once I started budgeting and cooking at home, I saw a lot of money that I could save that wasn't there before. I had to give up some of those things that I splurged on, but I also looked for deals that would allow me to enjoy them once in a while. I also take full advantage of my company's 401k plan, so that I can let my money work for me. There are so many books on ways to save money. I would recommend anything by Dave Ramsey! Good luck!

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Prashant’s Answer

Hi Angel, Great question!

The trick to saving (and also enjoying life at the same time) is to set targets. As a thumb rule, you should set a target of saving at least 20% of your earnings/salary and then making sure you achieve the target.
E.g.: Suppose you earn $3000/month and you set a target of saving $600/month. Some months you will have activities where you are only able to save $500, make sure you compensate this by saving $700 in the next month.

For investments, 401K (retirement benefit) is a great option. You can also invest in stocks/equity, mutual funds, cryptocurrency etc.
Do remember to diversify and not invest everything into single investment type. Also, do your research through internet and based on your risk appetite invest in the right instrument.

Finally, never use the money from your savings for your daily usage or going overboard. Let your money grow. You should always try to use the
money from your daily expenses (the 80% part and not use the 20% part).
E.g.: If you save $7200 in year 1. Don't use this up the very next year by planning an expensive vacation. Rather you should never use this $7200 and it's returns until you really need it or there is an emergency. Just keep adding to the pool, that's when you will realize the true benefit of compounding.
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Laurie’s Answer

Work within a budget! Use an app or a spreadsheet and list ALL of your expenses (track EVERY dollar you spend) for the month. Compare that to the amount of money you bring in for the month. Doing this for a few months will help you to understand where your money is going. You may be surprised to see how much you waste each month! Make sure in most cases to NOT spend more than you make. Never put WANTS on a credit card if you can't pay the balance at the end of the month. Live below your means. When you get a raise, pretend like it doesn't exist and save that money, either in a savings account or in some form of investments. Setting financial goals helps you focus. Maybe you want to save $5,000 for a car. Write that into your budget and set some money aside each month. Seeing that fund grow will motivate you to achieve it. Make sure you don't compare yourself to your peers or try to keep up with their spending. To you it may seem like they have a great life and are taking several vacations a year, but they may be putting all of those costs on a credit card and are in a huge amount of debt. Stay true to yourself and your goals, and don't let anyone influence you to spend when you cannot afford it.
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